Newbridge Networks Corp. yesterday posted gains in profits and sales for the second quarter, which closed Nov. 1. Revenue was up 7% from the year-ago period, to $457 million, while diluted net earnings for the period were $53 million, or 18 cents per share.
Newbridge attributes revenue growth largely to the increase in its WAN packet business, fueled mostly by sales of its MainStreet Xpress 36170 Multiservices Switch. The company also reported healthy sales of its Time Division Multiplexers, with revenue reaching $194 million.
Company officials also point to improved operating efficiency. Inventory dropped by $20 million, while operating expenses rose by only $2 million, or 1%, during the quarter. Newbridge also increased its cash position, from first quarter's $252 million reserve to second quarter's $761 million.